CONMED Corporation announced on December 5, 2025 that it will discontinue its gastroenterology product lines, a decision that will allow the company to concentrate resources on its high‑growth, high‑margin core platforms in minimally invasive surgery, smoke evacuation, and orthopedic soft‑tissue repair.
The announcement includes the termination of CONMED’s exclusive U.S. and Canadian distribution rights for the Gore® VIABIL biliary stent, effective January 1, 2026. The distribution of the VIABIL product will transition to Olympus Corporation, ensuring a smooth handover of the product line to a partner with established market presence.
Financially, the gastroenterology segment generated an estimated $90 million to $95 million in revenue in 2025, with gross margins around 45%. The divestiture is expected to lift consolidated gross margin by roughly 80 basis points and will result in EPS dilution of $0.45 to $0.55 in 2026, reflecting the lower profitability of the legacy segment compared with the company’s core businesses.
CONMED’s core growth platforms—AirSeal, Buffalo Filter, BioBrace, and Foot & Ankle—contributed the majority of the company’s revenue growth in the third quarter, with AirSeal and BioBrace each reporting double‑digit growth rates. CEO Patrick J. Beyer emphasized that “concentrating our resources on these platforms positions CONMED for long‑term success and continued leadership in surgical innovation.”
The market reaction to the announcement was muted; pre‑market trading showed a slight uptick, indicating that investors are digesting the long‑term benefits of margin expansion and a sharper focus on high‑margin segments. Analysts are awaiting the company’s 2026 guidance to assess the full financial impact of the divestiture.
Strategically, the exit aligns with CONMED’s broader portfolio optimization plan, which also includes a $150 million share repurchase program and the suspension of its quarterly dividend. The move reflects a shift toward higher‑margin, high‑growth opportunities and a commitment to returning capital to shareholders while strengthening the company’s competitive position in its core markets.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.